LONDON, ENGLAND – JANUARY 1: Fireworks light up the London skyline over Big Ben and the London Eye just after midnight on January 1, 2023 in London, England. London’s New Years’ Eve firework display returned this year after it was cancelled during the Covid Pandemic. (Photo by Dan Kitwood/Getty Images)

Dan Kitwood | Getty Images News | Getty Images

LONDON — European stocks were mixed on the last trading day of the year.

The pan-European Stoxx 600 index traded 0.2% lower by 12 p.m. London time Wednesday.

The U.K.’s FTSE index was trading 0.2% lower and France’s CAC 40 was down 0.6%, while Germany’s DAX rose 0.6%, and Italy’s FTSE MIB gained 1.1%.

All Stoxx 600 sector indexes were in negative territory heading into the last hour of trading in a shortened trading session. The technology and UK energy sectors fell the most, by 0.6% and 0.4%, respectively.

Markets are open for a half-day of trading on Wednesday, and will be closed on Thursday for the New Year’s Day holiday before reopening on Friday.

Defense stocks were on the rise for a second day, with Saab, Renk and Rheinmetall up between 2% and 3%.

Regional stocks extended gains to notch a fresh record high on Tuesday, with the pan-European Stoxx 600 index closing 0.7% higher.

London-listed Fresnillo was among the worst-performing stocks in the European blue-chip index on Wednesday, down 2.9% after a 6% jump on Tuesday. Other mining stocks were also top performers in the previous trading session, with Anglo American, Antofagasta, and Glencore rising around 3% each, but were spared any big pullbacks on Wednesday.

Precious metals, notably gold and silver, were also firmly in focus for investors during the holiday-shortened trading week. Silver futures retreated 8.2% while gold futures dropped 1.5% in midday trading.

U.S. stocks slipped slightly in premarket trading, heading for their fourth-straight losing session, as Wall Street prepared to ring out the last day of 2025. The S&P 500 looks set to lock in a 17% rise for the year in a third straight year of double-digit gains, although it appears to have missed out on a so-called “Santa Claus rally.”

Meanwhile, Asia-Pacific stocks fell overnight; markets in Hong Kong and Australia will close early for the holidays, while Japan and South Korea are shut for the day.

There are no major data releases in Europe on Wednesday.

– CNBC’s Sarah Min contributed to this report